One of the best things about being in the real estate business is that people always want to talk to you and the number one questions is always “How’s the market?” Well ... I'm sure much to their surprise ... the answer is "The market has shifted"!
Compared to the market in 2004 when anyone that could fog a mirror could buy a house. The market shifted toward the end of 2007, and the real estate business became much more complicated. Mortgages became much tougher to obtain, property values decreased, and distressed properties became a big part of the market. During which time we saw a lot of agents get out of the Real Estate business. This lead to a "Buyer’s Market", which means that buyer’s are in control of the transaction and can make more demands that are in their favor. The buyer essentially has plenty of homes to choose from, can make low offers, and can walk away if the seller isn’t willing to play by their terms. But ... EVERYTHING started to change by mid 2012 and has lead to another shift in the market!
The majority of the country is now in a seller’s market, which occurs anytime the inventory levels drop below five months. We even have some areas of Charlotte that have less than 3 months of inventory currently.
The seller is back in control of the transaction. With such low inventory levels, many buyers are fighting over the same properties. That means we’re seeing properties receiving multiple offers, which always benefits the seller as well. With the low inventory levels and the high demand, we have started seeing home prices increase. It's not huge, but we’re seeing appreciation for the first time in years.
And, with less distressed properties on the market, it helps to stabilize home prices.
So, to sum things up ...
No, your house is not worth what it was in 2007. No, we haven’t recovered completely from the shifted market. BUT, we are definitely moving in the right direction! If you have been thinking and tossing around the idea of listing your home within the next six months ... change your plan and list your home NOW!
You have no competition right now, so get the home on the market and price it right!